Beijing time on October 17th evening news, Amazon today announced that it will launch fresh electricity supplier service in New York Amazon Fresh". This will be the first time Amazon launched the service on the East coast.
Amazon said it would take the lead in the city of Broolyn (Brooklyn) area Park (Park slope) community launched fresh electricity supplier services, and then will expand to other areas. Park slope is one of the most livable communities in New York, living mainly young professionals, a large part of the Amazon users.
Amazon said, for the city of New York Fresh Amazon users, orders before 10 a. m., later in the day can be served, and after the order of 10 points will be served on the second. Although the service is mainly fresh products, but also covers electronic products and toys and other commodities.
initially, the service has become a member of the Amazon has become a member of the Prime New York residents. Amazon Prime members annual fee of $99, access to Amazon’s streaming TV and movies, but also free to enjoy the next day delivery service.
by the end of this year, these users do not need to pay additional fees to enjoy the Amazon Fresh service. But from 2015 onwards, in order to continue to enjoy the service, you need to upgrade to $299 "Prime Fresh" service.
currently, Amazon only in Seattle and other major cities in California launched a Amazon Fresh service. Insiders said that the march into the New York market highlights the determination of the development of fresh electricity supplier amazon. In the future, this part of the business will promote Amazon revenue growth.
for the Amazon, the New York market is not an easy thing to do. The first to face a strong challenge to the local online retailer Fresh Direct of non-staple food, the annual revenue reached $500 million. At the same time, Amazon also faces challenges such as Instacart startups. In addition, Google also launched in New York on the same day delivery service.
Amazon Fresh service method is adopted relatively old-fashioned, namely the bulk purchase of fresh products, and then stored with a refrigerator in the vicinity of the warehouse. People familiar with the situation said that the warehouse offering Amazon Fresh services in New York is located in the Avenel area of New Jersey, more than and 20 miles from park slope.
insiders said, although the food business profit rate is very low, but because Amazon can also sell consumer electronics and other more profitable products, so the overall profit margin will continue to outperform their peers.